Market Movers: Winning on Fundamentals

SAN FRANCISCO (07/17/2000) - So maybe earnings do matter after all. They did Friday, anyway, as strong earnings separated the market's winners from its losers. Companies with positive news took the lead, driving the Nasdaq above 4200 - its third consecutive rise. The index went up 1.64 percent, or 68.44, to close at 4243.30. The Dow rose a slight 0.17 percent, or 18.03, to 10806.74.

The beneficiaries of strong earnings announcements Friday included chipmaker Altera Corp. (ALTR) , up $8.50, or 8 percent, to $119.56, and Juniper Networks Inc. (JNPR) , up $3.50, or 2 percent, to $173.

Among those companies whose earnings announcements hurt them was Vitesse Semiconductor (VTSS) , which lost nearly 15 percent, or $12.87, to $73.81. PMC Sierra dropped $11.94, or 5 percent, to close at $217.

Gateway was one of the day's anomalies, falling even as it beat earnings expectations. Gateway stock was down $4.12, or nearly 6 percent, to $66.37.

Webvan fell hard on news that the company's losses this past quarter had exceeded those for the same period last year. Webvan's revenues beat expectations, but the stock fell 17 percent anyway, dropping $1.62, to $7.69.

Although large-cap technology stocks offered mixed results Friday, the Internet sector turned in some very strong performances. Inc. (AMZN) popped 20 percent on encouraging words from the Street, as at least one analyst expressed optimism about the company's cash reserves. Palm jumped 26 percent, or $9.62, to $46.19. EBay rose 14 percent, or $7.58, to $61.01. And Exodus Communications (EXDS) was up $5.94, or 12 percent, to $55.12.

New offerings continued their recent successful string, with Omnivision Technologies Friday's big winner. Priced at $13, above its expected range of $9 to $11, the stock soared 173 percent Friday. Omnivision gained $22.50 to close at $35.50.